e-bay sellers sources

With all the talk of certain recommended sellers to buy from on Ebay, does anybody know what their source is? I'm assuming that they are getting overruns from manufacturers, and then getting a discount for buying in bulk. But, why wouldn't these manufacturers or whomever just sell it directly to the consumer via the internet. This way, there would be no middleman and the prices would be even lower.

Most manfacturers are in the business of making clothes, not selling them on the internet... that business model is worlds apart from what they do, it's much easier to sell it to someone who will buy everything they want to get rid of.

I think at least some sellers buy leftover items from stores. I think that's what "discostu" does -- buying big blocks of unsold clothes from high-end Texas store, Stanley Korshak. I've often thought that another of my favorite sellers, parisvegas, either has a deal with various hotels in Las Vegas to buy up their lost and found clothes, or he has a deal with Las Vegas dry cleaners to buy up unclaimed clothes left at the cleaners. Either would be a good source for some high-end clothes, in nearly any big city.

I used to wonder the same thing-- but I assumed several of my purchases might have been stolen; later I learned many ebay sellers offer a high-end store ten grand for a rack of clothing, for example. apparently, the store may dismiss the idea at first-- but later come around, when they aren't making sales for the season. You can't beat worldsfinest and honest*goods on ebay, although they have both increased prices SUBSTANTIALLY over the past several months-- yet still far below retail.

I used to wonder the same thing-- but I assumed several of my purchases might have been stolen; later I learned many ebay sellers offer a high-end store ten grand for a rack of clothing, for example. apparently, the store may dismiss the idea at first-- but later come around, when they aren't making sales for the season. You can't beat worldsfinest and honest*goods on ebay, although they have both increased prices SUBSTANTIALLY over the past several months-- yet still far below retail.

Foxx, I was under the impression that retail stores cannot sell a certain item for less than a certain price set by the manufacturer. And, does anybody know if retail stores can just return overruns to the manufacturer like how bookstores can return extra books?

And, does anybody know if retail stores can just return overruns to the manufacturer like how bookstores can return extra books?

Thom: That's a good question. I think that in most cases it's not worth the shipping and other assorted costs to send something back to the manufacturer, who in any case is often not involved in retailing. Thus the manufacturer may not want them back. It has been my impression that out of a very, very few, Hermes did this to prevent its goods going on sale or to outlets (successfully, most of the time). I'd imagine it would be a big loss for a designer or manufacturer to take these back. What would it do then? Sell to a consolidator or discounter, which is what the big stores do directly and likely more efficiently. Clothes aren't quite like books -- you can't tear the cover off and then pulp or recycle them. BTW, I don't think all manufacturers set a certain minimum retail price. Some high-end manufacturers might, but it's not a rule as far as I know.

In the current market, buy-back programs have become more common. However, it is not standard practice. If a manufacturer had to take back unsold merchandise, they would bear all the risk, which is not a fair expectation.

I was under the impression that retail stores cannot sell a certain item for less than a certain price set by the manufacturer.

If the full price was far lower than that of other stores carrying the same goods, then the maker would probably take issue. But if the goods have been sitting around for some time and have not sold, it is certainly the store's right to clear them on out to make room for the new. They paid cash-money for the goods after all. An interesting fact is that sale prices are often well below the store's cost on the item..

Quote:

But, why wouldn't these manufacturers or whomever just sell it directly to the consumer via the internet

Because it's not worth their time. Selling via the web, especially via ebay, is extremely labor-intensive. Also, any goods that come from manufacturers are unsold past-season goods, customer returns, display models etc. It could undermine their reputation somewhat if they were to sell them directly. Often the goods will be sold only under the proviso that the buyer disfigure the label. As for where we get our goods, we obviously aren't tellin, otherwise we'd be short our lunch money Â Â

was under the impression that retail stores cannot sell a certain item for less than a certain price set by the manufacturer.

This would be illegal. However, most manufacturers/marketers have come up with a way around this. There are certain 'conventions' in the business that, if you do not play by their rules, will not be available to a retailer. For example, co/op advertising help, vendor supported trunk shows, invoice dating, opportunity to switch out non-selling merchandise, etc. The real bottom line is, however, most stores cannot survive unless they can maintain at least a 38% margin - so don't assume that the retailer naturally wants to sell at a discounted price and the manufacturer is always trying to raise/maintain a price. It is important for everyone to market merchandise at a fair price, for stores to carry a reasonable amount of said merchandise, but not to the degree that it does not sell at a profit, and to give value in this merchandise or service supporting the merchandise so that customers feel that their money has been well spent.

The real bottom line is, however, most stores cannot survive unless they can maintain at least a 38% margin - so don't assume that the retailer naturally wants to sell at a discounted price and the manufacturer is always trying to raise/maintain a price. Â It is important for everyone to market merchandise at a fair price, for stores to carry a reasonable amount of said merchandise, but not to the degree that it does not sell at a profit, and to give value in this merchandise or service supporting the merchandise so that customers feel that their money has been well spent.

What about all those advertisements where I see stores that are having a sale of 50% off on their suits. Are they really losing money then, or do suits have a different margain?

What about all those advertisements where I see stores that are having a sale of 50% off on their suits. Are they really losing money then, or do suits have a different margain?

I always thought that some of the $300-$500 suits that you see in a Macy's, Strawbridges or similar store were "overpriced" to start with. Â That is, they have a "tag" MSRP which is above the expected MSRP, which might be 20-25% less - for example, a tagged suit at $400 which is expected to sell at $300 (or whatever). Â In which case, a 50% sale would be only $200 - or 33% of the expected $300. Â Anybody know if this is true?